A building inspection clause in WA gives a buyer only the rights written into the contract. It should identify the inspection, deadline, qualified inspector, report requirements and consequences of an adverse finding. A clause dealing only with substantial structural damage will not necessarily protect a buyer against every defect, maintenance issue or pest problem.
Key takeaways
- Include the inspection condition before the seller accepts the offer.
- The exact contract wording determines the buyer’s rights and remedies.
- A building inspection and a timber pest inspection have different scopes.
- The buyer normally arranges and pays for their own suitably qualified inspector.
- Inspection notices and any agreement with the seller should be given in writing by the contractual deadline.
What is a building inspection clause?
A building inspection clause is a special condition in the Offer and Acceptance making the transaction subject to an inspection outcome. It can describe the type of inspection required, who pays, the time for obtaining the written report and what the parties must do if a defined problem is identified.
Consumer Protection WA recommends including a condition for a satisfactory building inspection when signing a contract of sale. It says the buyer is responsible for engaging and paying a qualified person, which may be a building inspector, surveyor or architect.
Do not assume that the phrase “subject to building inspection” answers every question. Vague wording can create disagreement about the inspector’s qualifications, seriousness of the defect, notice, repairs, price adjustments and cancellation.
What should the condition address?
A properly considered inspection condition should clearly deal with the following practical matters:
- the type and scope of inspection;
- who may perform it and whether professional indemnity insurance is required;
- who pays the inspection fee;
- the deadline for completing the inspection and providing any notice;
- the defects or threshold that activate the condition;
- whether the seller may repair, negotiate or obtain another opinion;
- how completion of agreed work will be verified; and
- the consequences if the issue is not resolved.
Special conditions should be drafted precisely. Consumer Protection says they should identify what must be done, by when, who is responsible, who pays and what happens if the requirement is not completed.
Does a standard condition cover every defect?
No. Many buyers expect a building condition to provide a broad satisfaction right, but common wording may focus on substantial or major structural defects. A report can list costly problems without necessarily creating a contractual right to terminate.
Examples may include ageing services, roof maintenance, dampness, drainage, cracking that is not classified as structural, non-compliant alterations or items outside the inspector’s scope. Whether any particular finding activates a right depends on the signed condition and report.
If you need protection for a particular concern – such as an extension, swimming pool, retaining wall or known cracking – obtain appropriate professional advice before signing. Do not rely on a generic condition to address a specific risk.
Is a pest inspection included?
Not automatically. A building inspection and a timber pest inspection are different services. Consumer Protection says a professional pest inspection checks for termites, European house borers and other infestations and should follow the national standard for timber pest inspections and reports, AS 4349.3.
If you want both reports, the contract should provide for both. Check whether the pest condition addresses current activity, previous damage, inaccessible areas and recommended treatment, and what contractual consequence follows from the relevant finding.
What happens after the inspector reports defects?
Your available options come from the inspection condition. A report alone does not rewrite the contract. Depending on the wording and findings, the next step might involve written notice, further assessment, repairs, treatment, price negotiation, confirmation that the condition has been satisfied, or legal advice about termination.
Consumer Protection recommends recording negotiations and agreements in writing, including who will perform and pay for repairs, when work must be completed and whether another inspection is required before settlement.
Do not instruct a contractor, withhold settlement funds or announce cancellation without advice. The report must be matched carefully against the contractual test and notice requirements.
What if the contract has no inspection condition?
If the O&A does not contain a condition dealing with the inspection findings, Consumer Protection advises seeking legal advice. Discovering a problem after acceptance does not automatically provide a right to withdraw.
There may be other issues involving representations, disclosure, statutory obligations or serious safety matters, but those questions are fact-specific. A settlement agent should identify when a solicitor or other specialist is required.
How do you choose an inspector?
Look for a suitably qualified, independent professional with appropriate experience and professional indemnity insurance. Ask what the inspection excludes, whether inaccessible areas are reported, how urgent issues are classified and when the written report will be delivered.
Allow enough time for access, inspection, the report and any contractual response. A deadline that expires before the report is understood can significantly weaken the practical benefit of the condition.
Is this the same as the final inspection?
No. A pre-purchase building inspection investigates the condition of the property and possible defects. A final inspection shortly before settlement generally checks that the property remains in the required condition and that agreed contractual work or included items are present.
Learn more about RG Settlements’ buyer settlement service. We monitor relevant contractual dates as part of the conveyancing process, but technical findings must come from the appropriate inspector.
Frequently asked questions
Can I cancel if the report lists defects?
Only if the signed condition or another legal right permits it. The number or repair cost of defects does not automatically decide the contractual outcome.
Can the seller choose the inspector?
The contract may allocate responsibility, but buyers commonly engage their own independent inspector. Read the clause before arranging access or incurring fees.
Can the seller repair the problem instead of cancelling?
Possibly. Some conditions give the seller an opportunity to remedy defined defects. The procedure and standard of repair depend on the contract and any written agreement.
What if the inspection deadline is about to expire?
Contact your settlement agent and obtain legal advice immediately. An extension is not automatic and must be properly agreed before you rely on it.
Check the clause before you sign
The inspection report can only protect you as effectively as the contract condition allows. Decide what matters to you, use the right specialist and make the required process clear before acceptance.
Ask RG Settlements to review the settlement implications and important dates before signing your WA property offer.
This article is general information only and not legal or financial advice. For advice about your specific situation, please get in touch with our team.
Authoritative sources
- Consumer Protection WA — property inspections
- Consumer Protection WA — offer and acceptance contracts
About RG Settlements
RG Settlements assists buyers and sellers with property settlement and conveyancing in Perth and Western Australia. Meet our team or request a settlement quote.